ALTO Pizza Kitchen + Bar gives you the right to future shares in their company.
Your investment today gives you a 0% discount on those shares.
You're speculating that the company will be worth more than $7,500,000 in the future.

ALTO Pizza Kitchen + Bar will be the exclusive food partner for Braxton Brewery, Northern KY’s largest microbrewery. The restaurant will open as the retail anchor of Duveneck Square a new mixed-use urban development project with 144 units built-in. The restaurant is brought to you by the founders of Flipdaddy's Burgers & Beers, a 5 store chain.

About this Campaign:

In spring 2018, ALTO Pizza Kitchen + Bar opens its doors as an upscale pizza & wine bar in the heart of Covington, KY (minutes from downtown Cincinnati). The restaurant is also the food service partner to Braxton Brewery, one of Cincinnati’s largest microbreweries. ALTO will anchor Duveneck Square a brand new urban development project in the shopping district of the city that's already begun construction.

Key facts:

ALTO Pizza Kitchen + Bar will open in Spring of 2018

ALTO will be an upscale pizza, wine & cocktail bar

Operator is an experienced restaurateur who owns five Flipdaddy’s Burgers & Beers restaurants in OH, KY, and Gulf Coast, AL.

Location is at the base of Duveneck Square, a new multi-use urban shopping & apartment district that includes 144 units

The neighborhood of Covington, KY is a popular suburb 1 mile from downtown Cincinnati.

There is a population of 203K people within a 5 mile radius.

Budget: Buildout costs including funds for working capital are $500,000.

Together at Last: Stone Hearth Pizza and Craft Beer for Covington

ALTO Pizza Kitchen + Bar: Stone Hearth Pizza

ALTO Pizza starts with our hand-tossed dough and old-world recipe sauces. It’s then topped with the freshest ingredients sourced from local farmers and ranchers who raise animals free from antibiotics & hormones. ALTO Pizzas are baked on a stone hearth until the crust is golden brown and our special blend of cheeses melt to perfection. We then pair your pizza with a curated selection of fine wines or a signature cocktail made by one of our mixologists.

Pizza is the fastest growing segment of the restaurant industry with a growth rate that’s doubled any other dining segment at 11.4% (Pizza Magazine’s 2017 Annual Industry Report). Blaze Pizza, for instance, is an emerging brand with 205% YOY sales in 2015. Two other fast-casual brands: MOD Pizza climbed 182% and Pieology posted a 67% gain.

An Experienced Restaurateur

ALTO Pizza Kitchen + Bar will be owned & operated by Bob Dames, the founder of Flipdaddy’s Burgers & Beers. Dames built one of the region’s fastest growing burger pubs with five chains located in Ohio, Kentucky, and the gulf coast of Alabama. He brings 8 years of experience in operating restaurants paired with specialty cocktails & microbrews. Most importantly, Dames developed a partnership for ALTO Pizza + Bar to become the food partner to Northern Kentucky’s largest microbrewery, Braxton Brewing. ALTO Pizza Kitchen + Bar is right next to Braxton Brewery.

Braxton Brewery is one of Greater Cincinnati’s largest regional breweries. Founded by Evan and Jake Rouse, who began homebrewing when they were only 16 years old, Braxton is one of the first major microbreweries in the region. Braxton operates an 11,000 s.f. brewery & taproom that’s expanding with a roof-top bar. They distribute all over OH, KY, & TN, and produce over 15,000 bbls/year, elevating them from Microbrewery to REGIONAL brewery status.

Since opening in Spring 2015, Braxton’s presence has been recognized as a key to Covington’s renaissance and revitalization. As Braxton continues to scale, they’ve been searching for a restaurant partner who’ll put the same amount of quality into their food as much as Braxton does into its craft beer. Braxton has already partnered with Northern Kentucky University, and even Graeter’s Ice Cream to make specialty beers. ALTO Pizza Kitchen is proud to partner up with Braxton, and will put an ordering kiosk directly inside the brewery.

Investors note that you may consider ALTO Pizza Kitchen + Bar, LLC as an independently owned & operated entity separate from Braxton Brewery. Our partnership with Braxton Brewery does not guarantee in any way that your investment will be successful.

The Anchor of Duveneck Square in Covington, KY

ALTO Pizza Kitchen + Bar will anchor Duveneck Square, a new urban mixed use retail development with 144 apartments. The building, located at 29 West 7th St. Covington, KY, sits between Covington’s historic Mainstrasse and the Madison Avenue shopping & business district. The street enjoys consistent foot traffic with several retail boutiques, coffee shops, bars, theaters, hotels, and art galleries within a block of the building. There are over 204K residents living within a 5 mile radius.

Covington sits on the southern bank of the Ohio river of its sister city Cincinnati, and is the gateway to the Kentucky Bourbon trail. This burgeoning city draws comparisons to Brooklyn, because it’s become a popular enclave with its own economic & cultural epicenter. Even the bridge that connects it to Cincinnati was a model for the Brooklyn Bridge. Covington is currently undergoing a renaissance of urban renewal with new residents, a thriving tech community, and new businesses moving in everyday.

The Goal: $210,000 Average Monthly Sales

We estimate sales in the first year to reach $2.5 million and average ~$210,000 a month with a range from as high as $250,000 a month in December to a low of $150,000 in July. Since we’re partnered with an existing brewery, we’ve modeled our sales based on current brewery traffic. We anticipate needing $146,000 of sales each month to break even.

We anticipate a minimum of 300 customers daily with average checks of $10.50 at lunch and $22.50 at dinner. We plan to operate at approximately 30% net margins (EBIDTA) based on our experience operating other restaurants. We project first year sales of approximately $2.52 million. Note, these are pro-forma annual sales, since we have no operating history in this store yet.

ALTO Pizza Kitchen + Bar Opens Late Spring 2018

Timeline

Pro-Forma Statements

Use of funds

The plan is to use the funds for the build-out and operations of the restaurant which we’ve budgeted $500,000 in total.

Meet the Management Team

Term Sheet

The SAFE or Simple Agreement for Future Equity is a popular option for new companies raising capital. ALTO Pizza Kitchen + Bar (registered as FATWOOD LLC) is offering future equity shares in their company. Before investing, please review the full terms of the SAFE Agreement and Perks Agreement

Raise Target: Minimum of $50,000 and up to $500,000

Minimum Investment: $100

Pre-Money Valuation Cap: $7,500,000. This means you're speculating the company will be worth more than this amount in the future if the company were acquired or raised another round of capital. Since your investment will be against this valuation cap, it would result in a higher percentage of ownership, compared to the later round investors who would be investing against the higher valuation.

If you have any questions, please post your questions in the Comments Section above.

Perks

Dear Investors,

I'm so excited to bring ALTO Pizza Kitchen + Bar to Covington, Kentucky. ALTO Pizza Kitchen + Bar will feature a chef driven menu with creative pizzas, salads, and bowls made with the finest and freshest ingredients. The Bar will have an extensive wine selection and mixologists on staff will bring classic cocktails and our own signature line-up of exciting new combinations.

I'm a restaurateur with years of experience operating Flipdaddy's and now bring a dedicated team of knowledgeable professionals to the ALTO Pizza Kitchen + Bar. Our Team has successfully launched 5 Flipdaddy’s Brilliant Burgers & Craft Beer Bar in the last 7 years.

Our partnership with Braxton Brewery gives us a kiosk in the brewery for customers to order directly from ALTO Pizza Kitchen + Bar right next door so we can walk food over. This unique arrangement allows us to double our restaurant capacity at no additional cost, and be the major anchor of the new Duveneck Square development.

Covington, KY is the perfect location for us, because it is experiencing a revival similar to the Over-the-Rhine neighborhood of Cincinnati (a top 15 city in the country). Led by Braxton Brewery, Covington has attracted new hotels, residential complexes, company headquarters, entertainment venues, and upscale retail. With the addition of ALTO Pizza Kitchen + Bar, we’ll be the first upscale pizza restaurant in the area!

I welcome you to join us as investors in this exciting project!

Thanks so much!

Bob Dames

Risks & Disclosures

You’re investing in ALTO Pizza Kitchen + Bar in Covington, KY. You are relying on the manager to effectively execute the business plan, and as a result, investors will not have any influence on the decisions of the management.

The lease & build out of this property comes with risks to the timeline of the general contractor, subcontractor, architects, licensing, and other third parties who are contracted to complete the effort. While there is a milestone schedule to complete the project, the schedule is subject to getting financing, completing the build-out and getting the business up and fully operational.

Braxton Brewery operates a separate and independent business from ALTO Pizza. None of the brewery’s revenues or the health of their business should be dependent on ALTO.

The company’s projections are all forward looking, and there is no operating history. While the company certainly believes in its pro-forma revenue projections, they cannot assure that sales will be fully realized.

ALTO Pizza Kitchen + Bar has made the following updates:

Updates

Hello Flipdaddy's Family & Friends!

Let me take a moment to thank you again for being an amazing supporter of Flipdaddy's Burgers & Beers.

ALTO Pizza Kitchen + Bar Opens in June. Soon, you'll be able to order ALTO Pizza from within Braxton Brewery

The new restaurant opens in June and will the flagship store of our new chain. We're super happy to open with our neighbor, Braxton Brewery in Duveneck Square, as their exclusive food service partner. This new venture opens in time for the summer! So, now you can have your favorite Braxton beer AND a pizza. Together at last!

Project FAQ

How did you end up partnering with Braxton Brewery?

As the owner of Flipdaddy’s Burgers & Beers, we’ve had a strong relationship serving Braxton’s beer at our restaurants. Flipdaddy’s has been a strong customer and we’ve continued to grow together as that franchise has expanded. Braxton Brewery brews a beer exclusively for us - Flipdaddy's Lager. Their Covington taproom has grown into a successful taproom, but the one downside is they don’t serve food. Customers want food when they drink, and so they wanted a strong operator. We decided to partner together and put a kiosk for ordering right inside the brewery.

Why go with ALTO Pizza Kitchen+Bar instead of another Flipdaddy’s?

We love burgers, but we wanted to get into growing food segment where we could deliver really fast service. Rapid fire pizza is the fastest growing part of the restaurant industry with strong margins and quick customer cycle each day. Plus, who doesn’t love beer and pizza together?

Do you have any concerns about getting enough traffic in the area?

We’ll be footsteps away from the main business & shopping district. There are many retail shops, hotels, art galleries, stores, bars, apartments, and live entertainment footsteps away. We'll be part of Duveneck Square with 144 brand new units above us, and other retail planned for this building, so we’ll have plenty of traffic each day. Also, it doesn’t hurt to have a brewery that’s always full as your next door neighbor.

What effect does seasonality have on your business?

We’re in the heart of the city with many residents, so we expect consistent flow of customers throughout the year. We are not affected by seasonal fluctuations in this location.

Are there other pizza places close by that you consider to be competition?

There are two pizza pubs a half mile away in the historic part of the city, but we’re the only one along the business & shopping district. ALTO is the only one that brings the strength of Braxton Brewery at our side.

What are your plans to grow and scale the business?

We want to build the next great pizza brand, and will use our operational experience in growing Flipdaddy’s. We were able to grow Flipdaddy’s into a 5 store restaurant chain by carefully selecting the right neighborhood locations. Then, we created unique dining experiences, and an emphasis on the highest quality food while operating our stores with excellence. With ALTO Pizza, we’ll also bring the strength of an expanding brewery.

This is what people have been saying about ALTO Pizza Kitchen + Bar:

I think Wonderfund should be more upfront about this SAFE agreement and that the ‘triggering’ events may never occur leaving Wundefund investors NOTHING in exchange for their investments. Also typically SAFE agreements offer 20-30% discount on future equity to entice investors to take the risk the equity is never issued by the agreement. This offering offers 0% discount.

Few questions:
It’s not clear whether you have plans to scale the concept beyond the first location, and if so, would investors be a part of that upside? In other words, is the $7.5M cap based on just this one location, or the concept overall?

2nd: Since this is a SAFE there is no expiration, which means there are no plans to pay back Note holders unless there’s an exit event. Normal for a tech startup, but for a restaurant the appeal is typically participating in distribution of profits since they aren’t often bought/sold. Am I correct that the only way Wunderfund investors get paid back is if they either raise an equity round (at which point we’d convert to owner and in theory participate in profits) or get acquired? To say this another way, what’s the planned path for returning capital for this deal?

First, Alto at Duvneck is the first of what we envision to be many locations. This investment is in the Alto brand and as such will have the opportunity for upside as we move into additional locations. The $7.5MM cap is based on the overall concept.

Second, we agree that a SAFE is more common in a tech startup. However, we envision significant growth in the brand, at which point we will likely pursue an equity raise that will allow us to scale quickly. This future equity raise would result in the SAFE converting to equity and those that participate in the SAFE will participate in future distributions from the company. We know this is not a typical of a restaurant, but our overall goal is to avoid the burden of debt and generate champions of the brand through ownership.

Bob, I was prompted by a Wunderfund email on 4/30/2018 to comment so here are my thoughts. As an investor in several breweries (Not Braxton) and a medical services startup, I was impressed by your operational experience and the location. That’s why I invested, but a small amount. I am not very familiar with the SAFE conversion process. I may have considered investing more, but two things held me back, 1.) the safe conversion process and 2.) what percentage of the company $50K represents now. WRT 1.) if you do a second raise, at what point do I become a shareholder, ie, the safe converting to equity. As the manager, you have a duty of loyalty to shareholders to provide “drag along” rights to them with any future corporate opportunity. Nothing I saw guarantees this “drag along” right in the documentation provided. If I am not explicitly declared a shareholder before the capital raise, then the “corporate opportunity”/ “drag along” right may not apply to me. Please be more explicit in describing the SAFE conversion process. An explicit example with expected case numbers would be helpful. WRT 2.), when I asked this question I could not get a clear answer as to what percentage of the company, $50 represents.This should be in the elevator speech. Please clarify what percentage of the ownership the $50K raise represents? What percentage of future distributions will go to shareholders? Will you expedite distributions to SAFE investors so that they get their return on capital sooner than the majority owners; something like a 75/25 split until their capital is returned and then as an agreed upon percentage? Another explicit example would be helpful. Cheers! Steve Olenick

The SAFE converts to equity at an equity event. An equity event would be any of the following: Raising an additional round of equity capital, selling the business, or an IPO. All of these would convert the SAFE at the SAFE valuation.

As for the value of 50,000, it is 0.67%. With a target raise of $500,000 we allocated 6.67% of equity to crowdfunding, which is based on the $7,500,000 valuation cap.

Drag along rights are not contemplated in the SAFE, however at an equity event, the SAFE converts, and we would look to all of our investors to drag them along, not just the founding investors. Further, we do not anticipate any distributions in the first 3 years, as the cash flows will be used to ensure the company is growing and ready to build the next store. In addition, we would not accelerate distributions to ALTO investors over others. There are tax implications to distributions, and therefore all distributions would be prorata based on the percentage of ownership.

A friend of mine knows Bob Dames well and always believed in the mission of Flip Daddy’s. My family and I have eaten at “Flip’s” countless times and it’s always a great experience between the atmosphere, the beer and the food. So when this opportunity arose to invest in Bob’s new venture, I talked with my friend and we discussed the potential that ALTO has with Bob at the helm. Adding the partnership with Braxton, and a great location, I’m proud to say that I’m at the ground level of a soon-to-be successful endeavor. I can’t wait to see ALTO become one of the premier hot spots in the Cincinnati/NKY area.

Bryan, I appreciate your comments and don’t disagree with you (your reasoning is why I made a modest investment). Do you understand what the expected case is for the ROI? I sure don’t. How and when an investor reaps a return is still not clear to me. Do you understand what % of the company you own? I sure don’t. It appears a most likely buyout ($7.5M) might occur when Bob decides to retire. Does anyone know when that event will occur or what other event might precipitate a buyout?

Cancellation Policy

Like all campaigns on our platform, if ALTO Pizza Kitchen + Bar does not reach its funding goal, you will be notified via emails from both Wunderfund and the issuer and receive a full refund for your investment (minus any escrow operation fees with said issuer). For more information, please check out our risks and cancellation information in our FAQ.

Documents

Check out our Form C filed with the SEC for their important documents like financial statements, Directors, Officers, current shareholders with more than 20% of voting rights, and more.